Why do you need to buy non-owners auto insurance?
Posted on September 21st, 2012
It’s common knowledge that if you buy a car, you ought to get auto insurance for it, but to think that you also need to buy insurance for a car you don’t own but merely rent often is strange. Well, not really, if you consider that this insurance covers any damages caused due to an accident to a rented car or due to theft for which you will be held responsible. In such a scenario, if you have bought non-owners auto insurance, you won’t feel the pinch so much as the claims against you can be really high.
For this reason, it makes sense to invest in non-owners auto insurance in either a monthly or yearly plan. But how do you know which one is the best for you? The b
Tags: Auto Insurance, Insurance
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Most States Allow Auto Insurance Scoring
Posted on August 22nd, 2012
Did you know that your auto insurance company can charge you higher rates if you are close to the limits on your credit cards or have filed bankruptcy in the past? In most states, they can. In 47 states and the nations capital, credit-based car insurance pricing is allowed and is commonly used. This so-called insurance scoring has been used for more than a decade, but will be outlawed soon if some opponents have their way. According to Insurance News Nets OAI: Auto Insurance Scoring Bill Highlights Controversial Practice, three Democratic House members have a bill they hope will end the process of insurance scoring.
Currently, when you are looking to get a quote on auto insurance, in most states insurers will look into your financial history before making your quote. They can increase your premium based on your applications for new credit, how close you are to your debt limits, and other financial factors. Many different states have already tried this type of bill on the state level to no avail. If state auto insurance legislation is any indicator of how this bill will fare federally, it has quite a difficult path to follow. Massachusetts is the only state that has passed a recent ban, but it was just an update of an existing ban on this insurance practice.
There are two hotly debated sides to this issue and both have their points to be made. Supporters of insurance scoring say that studies show that people with bad finances tend to file more auto insurance claims and bigger claims than those with a sound financial history. Based on this they say that pricing is more fair and accurate when insurance scoring is used. Without it, those with strong financial backgrounds would be paying more than they should to compensate for those with poor financial histories. Opponents of the program say that lower income drivers are already struggling and this will catastrophically hurt those who are trying to do the right thing by carrying auto insurance. Well keep you updated with where this bill goes.
Tags: Auto Insurance, Insurance
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Insurance Industry Shifts The Blame – Understanding Business Interruption Claims
Posted on August 15th, 2012
Last week, I posted . This week, A.M. Best Company – one of the world’s oldest and most authoritative insurance rating and information source- released similar content in a white paper titled “Emerging Opportunities in Business Interruption Coverages for Insurance Agents and Brokers.”
White papers are traditionally published to present solutions to arising issues, concerns or problems in a specific sector (i.e., public policy solutions in government). White papers are not open-ended or consultation documents – they identify specific problems and propose solutions that typically favor or benefit the drafter. In this c
Benjamin Franklin is the Father of American Insurance
Posted on July 15th, 2012
Philadelphia is a fun city that brings back a lot of memories for me. I took a deposition of an insurance claims manager from Maiden Re yesterday and then spent some time with Kevin Healey of my firm wandering around Philadelphia thinking about the history of our country and this great historical American city.
Benjamin Franklin, a citizen of Philadelphia, has long been one of my favorite American heroes. In my mind, he is should be considered “the Father” of American insurance. A
Tags: Insurance
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CA Auto Insurance Code Seems Like No-Brainer
Posted on July 11th, 2012
After reading The San Francisco Chronicles What insurance companies can do to you by Jon Carroll, I am left scratching my head. Its quite apparent that comparing auto insurance companies is more important than ever, not only for good premium prices, but to find a company with ethical practices. The author received a legal form letter from his auto insurance company after filing a claim detailing Insurance Code 790.03.
The code has long, wordy sentences that seem to go around in a circle without really getting to a definitive point. Carroll says that it basically infers that auto insurance companies should not lie to their consumers or cheat them at all. But it is quite vague and doesnt say that insurance companies should never lie or cheat. It states that they shouldnt do it as a common practice. Its almost saying that it is okay to deceive consumers once in awhile, just not regularly.
Sixteen items are listed on the form detailing what California auto insurance companies should not do. One of the items says that insurers should not push consumers to take legal action in order to receive their settlement if the court will simply deem that what the consumer was fighting for was actually a fair amount. To me, the chances that someone will take an insurance company to court to prove they were expecting a fair amount of reimbursement is absurd. That costs a lot of money.
There is even a code saying that insurance companies shouldnt alter your paperwork, making it so that you dont get paid as much or at all. The author points out that this should actually be fraud or illegal, not simply a frowned upon practice. The bottom line is that you want to make sure you choose an auto insurance company that is ethical and follow all of your claims closely. Lets hope that these Codes dont actually need to be used by many consumers in fighting their insurer.
Tags: Auto Insurance, Insurance
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The essential details about teen auto insurance you need to know
Posted on May 29th, 2012
The teen drivers now can also get insurance. This insurance for the teenager drivers are a bit costly than the normal one. There are certain reasons for the teen auto insurance to be comparatively more expensive. The first and most important reason is that the teen aged drivers are considered as somewhat not much experienced so there is always more possibility of them to meet with an accident. As the probability of the teen aged drivers to have an accident is most so the rates of the teen auto insurances are always very high. It has been reported several times that the normal premiums of the car insurance has been raised to over 50% when it becomes teen auto insurance.
Tags: Auto Insurance, Insurance, Teen Auto, Teen Auto Insurance
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Car Insurance for Collectors
Posted on May 22nd, 2012
If you keep a vehicle primarily as a collector’s item, standard auto insurance coverage is likely unnecessary because such vehicles are rarely driven and don’t require extensive insurance protection. For example, you might have an exotic Italian sports coupe that you only drive for a few weeks in the summer, or a 1976 Pontiac Firebird Trans Am that you only drive back and forth to an occasional auto show. Rarely driven show vehicles like these are best covered by classic auto insurance. Such policies offer the same protections as standard policies but, because the insured vehicle spends the majority of the year in storage, are substantially less expensive.
You and your vehicle will need to meet the carriers requirements in order to qualify for a collector car insurance policy.